Wells Fargo is notorious for being one of the most difficult lenders to get approved for a loan mod.  They had a relatively low risk loan portfolio and did not take any of the HAMP stimulus money from the feds, so getting denied on your Wells Fargo loan workout is pretty common.  The good news is that there could be an easy fix that you can take advantage of when you re-submit your RMA application for review.

The plain fact of the matter is that no matter how much you deserve a loan modification, you will not be approved until you show Wells Fargo that your own specific financial situation fits into their very tight guidelines.  This simply means that the monthly budget figures for your household need to be carefully prepared, verified and then pass these tight and very specific requirements.  You were probably denied due to reporting the wrong monthly budget figures.

Luckily, a Wells Fargo Loan Modification approval uses the same standard approval guidelines as the other lenders-and you can find out ahead of time exactly what your own specific monthly budget requirement need to be BEFORE you submit your RMA form again.  We have put together an affordable, easy to use and highly effective loan mod Calculator that will automatically show you just how much Monthly Income, Monthly Expenses and Assets that you will need to report in order to meet the approval formula and increase your shot at getting approved.

Approval Formula Computed Automatically

The Loan Mod Kit and Loan Mod Calculator is available to homeowners at a low cost, AND it comes with one-on-one customer support so that you can get the help you need to fine tune your monthly budget figures and resubmit your denied Wells Fargo loan modification again-BUT this time you will be armed and ready with the information you need to be successful.  Visit MyLoanModificationCenter.com and get started right away, thousands of homeowners have been successful, YOU can too!

Wells Fargo Loan Modification Approval Formula Explained

Posted by admin On April - 30 - 2013

The Wells Fargo loan modification approval formula uses the borrowers gross monthly income, the current mortgage payment and loan balance and something called the Waterfall Method.  Here are some details that will explain how this approval formula works and why it is critical that your loan mod application shows just the right amount of monthly income, expenses and assets.


  1. It’s all about the MATH-no matter how deserving you are,unless your financial worksheet figures are acceptable and pass the formula, you will NOT be approved for a new lower mortgage payment!  Don’t think that the bank is on your side and wants to help you-they will only help you if you prove to them in black and white that your financial situation fits into the strict guidelines for acceptance.
  2. Most Important! The household monthly gross income is a critical part of this formula-the amount of total gross monthly household income you report will be used to determine your debt ratio, your new target modified payment

    Approval Formula Computed Automatically

    and also if you pass the Waterfall.  If you report too much or too little income, you will fail.  Homeowners can use the Loan Mod Calculator to automatically compute and display exactly HOW MUCH income will be required to PASS.

  3. The debt ratio calculation uses your total gross monthly income and your current mortgage expenses-monthly mortgage payment, monthly property taxes, monthly homeowners insurance and any HOA dues.  The standard approval formula requires that more than 31% of your income be used for household expenses.  However, a new plan called Tier 2 is a bit more flexible on the debt ratio formula and allows a range between 25% and 42%.  The Loan Mod Calculator will compute your debt ratio and show you a PASS or FAIL for this category instantly.
  4. Cash flow is part of the Wells Fargo approval formula and tells the bank if you are truly in a financial hardship.  Ideally, after paying all of your monthly bills you should be barely making it or even in a negative cash flow-BUT after the loan mod you need to show that you will have at least $250 left over each month.  Use the Loan Mod Calculator to fine tune your expenses so that your results show you a PASS for these two important categories.
  5. What is the WATERFALL?  This is the test that you must PASS-it shows Wells Fargo that your mortgage can be modified using standard terms to arrive at your new modified, affordable mortgage payment.  Your Loan Mod Calculator results will show a Pass or Fail for the 30 year, 2% mod, or for a 40 year mod or for principal reduction.  You may need to adjust your budget figures until the Calculator shows you a PASS for one of the Waterfall categories.

The secret to the Wells Fargo loan modification approval formula is knowing ahead of time how to adjust your budget figures so that you PASS and that you be able to submit an acceptable financial worksheet with your loan mod application.  Visit MyLoanModificationCenter.com for more tips and information.

Applying for a Wells Fargo loan modification can be confusing, frustrating and scary-especially if you cannot get the answers to your questions!  How do you know if your budget figures will pass the guidelines for approval or if you need to make some adjustments in order to qualify?  What about writing your Hardship Letter-there are some important topics that you should hit in order to write an effective and compelling explanation of your current financial situation.  Don’t make the mistake of thinking that the bank really is on your side-they only care about what will save them money-it is up to you to convince them that you deserve a loan modification and your application paperwork is the only way to prove this to them!

However, you can get very helpful Customer Support services that will be a big benefit when applying for your Wells Fargo loan modification.  The best selling

Approval Requirements Computed Automatically

resource – The Complete Loan Modification Guide kit and Loan Mod Calculator not only provides you with the step by step, detailed approval criteria, but also includes FREE Customer Support to assist you with your application process.

You will get answers to these common loan mod questions:

  1. How much income do I need to report to pass the strict debt ratio guideline?
  2. How do I include non borrower income-spouse or room mate or rental-and how do I correctly list this additional income?

    Calculator Incl-Download immediately!

  3. What monthly expenses should I list on the RMA application form?
  4. Is my monthly cash flow acceptable?
  5. Will I pass the critical Waterfall terms for approval?
  6. What will my new loan mod terms be?  How low will my new target payment really be?
  7. How do I prove my income if I am self employed?  What kind of P & L do I need to submit?

Yes, there are many questions that arise when you apply for a Wells Fargo loan modification, but you can get the one-on-one Customer Service you need to help you avoid mistakes and apply correctly.  Visit MyLoanModificationCenter.com and order the Loan Mod Kit and Loan Mod Calculator now-one of the Customer Service reps will contact you immediately to help get you started right!

New programs now allow borrowers to apply for a Wells Fargo loan modification on rental properties as well as owner occupied homes.  There are some differences in how the bank determines eligibility on income properties as opposed to primary residences.  Here are some tips that will help you understand how these programs work:

  1. Wells Fargo loan modification Tier 2 plan is designed to assist at-risk borrowers on investment, rental and second homes.  The basic guidelines are similar to the normal loan workout plan, BUT financial hardship is still the main criteria.  Simply being “underwater” is not considered a valid reason by itself.
  2. Negative monthly cash flow for rentals and loss of equity combined are viewed as a legitimate financial hardship.

    Approval Requirements Computed Automatically

  3. Rental income is computed using a standard formula when determining total monthly gross income for the borrowers qualification.  A property schedule worksheet is helpful to compute this acceptable rental income-especially if you have more than one rental property.  The Loan Mod Kit includes this property schedule as well as detailed directions on how to compute rental income correctly.
  4. Vacant rental properties are eligible, and would be listed as a “negative” cash flow on the Wells Fargo loan mod financial worksheet.  The Loan Mod Kit and Loan Mod Calculator will provide more detailed directions and compute this for you automatically.
  5. You will be asked to provide proof of rental monies received-either with a tax return, bank deposits, rental agreement, canceled checks.
  6. The rental or second home property being considered for a loan workout must have a balance of less than $729,750 for single units, (higher for 2-4 units), and the loan must have been originated prior to January 2009.
  7. This new Tier 2 loan mod program is effective 2013 and runs through the end of this year.

It is critical to prepare your Wells Fargo rental property application correctly, and list your monthly gross income and rental income accurately.  The bank uses a formula that determines how much of the rents will be counted-make sure you use the Loan Mod Kit and Loan Mod Calculator to help you get this part right.

For more free tips and information, visit MyLoanModificationCenter.com and read Blogs.

Do you understand the Wells Fargo loan modification budget approval guidelines?  When you prepare your application form, you are required to list your monthly income, expenses and asset-and this information is used by the bank to determine if you pass the guidelines for acceptance.  That is why it is critical to know just what to report and how to complete the form correctly.  You can use an easy Worksheet to help you understand exactly how to do this-here are some helpful steps to follow.

Easy Worksheet Directions:

  1. Gross Monthly Income:  Find out how much income you need to report in order to pass the important debt ratio and Waterfall approval guidelines.  The Worksheet and Loan Mod Calculator will show you exactly how to adjust your

    Approval Requirements Computed Automatically

    income if necessary in order to prepare your application correctly.

  2. Household Expenses:  Items like groceries, utilities, car payments, insurance, day care, etc must be itemized for Wells Fargo-the bank is checking to find out if your cash flow figures are acceptable and if a loan mod will be a solution for you.  You may need to increase or decrease some items-the easy Worksheet and Loan Mod Calculator will show you exactly where and how to do this so you pass this category for approval.
  3. Assets:  Another important approval trigger is the assets that you list-while you may think that your assets are acceptable, the easy Worksheet and Loan Mod Calculator will actually SHOW you a PASS or FAIL for this guideline.
  4. Waterfall Results:  Your budget figures must fit into the standard formula called the Waterfall.  This is how Wells Fargo will determine if your loan can be modified and reach the new target monthly mortgage payment.  You gross income, loan balance and payment are used in this formula.  The Easy Worksheet and Loan Mod Calculator actually compute and display the Waterfall results and show you what your new loan terms and monthly payment could be.  Use the Calculator to adjust your budget until you see a PASS on the Waterfall.

You can avoid mistakes and find out ahead of time exactly HOW to submit your application-use the Worksheet and Loan Mod Calculator to compute and display your own specific budget approval figures-give your self the very best shot at success.

For more free tips and information visit MyLoanModificationCenter.com and ready Blogs.

Wells Fargo Loan Modification-How the Waterfall Works

Posted by admin On April - 4 - 2013

In order to qualify for a Wells Fargo loan modification, your monthly budget worksheet figures must pass the Waterfall guidelines.  This is the method that the bank uses to determine if a  homeowners mortgage loan can be modified to reach the desired new, target payment.  So, it is critical that you understand exactly how to list your income, expenses and assets on the application in order to pass this important approval test.


  1. It is called Waterfall because of the order in which the different methods are used to modify your loan.  If the first one does not achieve results, then Wells Fargo will “waterfall” down to the next, and so on.  There are 3 stages to the Waterfall, and you must pass one of these to qualify.
  2. The first step is to determine what your new modified target payment will be.  This is done using the reported gross monthly household income on your application.  The new target payment will include principal and interest, property taxes, insurance and HOA dues if applicable.  This target payment will ideally equal 31% of the gross income, BUT new guidelines also offer alternatives as low as 25% and as high as 42%.  The Loan Mod Calculator is a

    Waterfall Results Computed

    program for homeowners that will automatically compute and display your new payment for you so you know what to expect ahead of time.

  3. Wells Fargo will then compute a modification by lowering your interest rate to meet that new target payment.  They can go as low as 2% to achieve it-if that does not work, then the next Waterfall is used.
  4. Extend loan term to as long as 40 years
  5. Final Waterfall is to reduce the loan balance by either deferral or forgiveness-this is tricky though because if they have to reduce too much, you will fail the Mitigation.  The Loan Mod Calculator will show you if this option is needed and how MUCH would be required-important to know!!

So, it is critical that your monthly gross income be sufficient to pass one of these Waterfall methods or you will not qualify for a Wells Fargo loan modification.  Use the Loan Mod Calculator to compute and show you exactly how you need to report your monthly income, expenses and assets and also show a PASS or FAIL for your Waterfall results.

Visit MyLoanModificationCenter.com for more free tips and information-Blogs section.

Trying to get approved for a Wells Fargo loan modification is tricky-especially when you do not understand the debt ratio guidelines or how to apply correctly.  Most homeowners will be denied simply because they do not know how to complete the budget worksheet and do not know how to report their monthly income, household expenses and assets.  However, the good news is that there have been changes made to the debt ratio guidelines that make it a bit easier to qualify and pass the income requirements.

The new Wells Fargo loan modification debt ratio guideline will help borrowers because it is more lenient and actually works in a range of acceptable figures.  Previously homeowners had to make sure their financial worksheet showed exactly the acceptable amount of income to to pass the strict 31% debt ratio guideline-and that is almost impossible!

Here’s how the new Wells Fargo Debt Ratio guideline works:

  1. Current debt ratio can be as low as 25% and still be eligible for a new mortgage mod-as long as at least a 15% savings is accomplished

    Computes Income Guidelines

  2. The NEW modified target payment can equal anywhere from 25% to 42% of the borrowers gross monthly income.  Use the Loan Mod Calculator to compute and display your current debt ratio and your NEW target payment ratio.
  3. The Waterfall modification terms are still the same-meaning that the new target payment can be reached by lowering the interest rate, increasing the loan term or reducing the principal balance

This new range of acceptable ratios is helpful because it means that Wells Fargo will have more options to help borrowers who were previously ineligible.  However, you must still pass the Waterfall and be sure to report the acceptable amount of income, expenses and assets to pass all of the approval guidelines.   The Loan Mod Calculator will show you a PASS or FAIL for the Waterfall and the new debt ratio guidelines.

Visit MyLoanModificationCenter.com for more free tips and information in the Blog section.

When you apply for a Wells Fargo loan modification, you must complete the new RMA form and report your monthly budget figures for review.  This is really important information and you need to understand exactly how to list your monthly household income, expenses and assets so that you will pass the approval guidelines.

The Wells Fargo RMA form includes a financial worksheet page where you will need to detail all of your monthly budget figures.  Here is what they are looking for:

  • Gross Monthly Income:  this is the total “before tax” income that your household get every month.  You can include room mates, non borrower contributors like spouses and relatives

    Computes Your Budget

    who live in the home.  Be careful-if you report too much or too little you will NOT pass.  Use the Loan Mod Calculator to compute how MUCH income you should list on your RMA form.

  • Monthly household Expenses:  items like groceries, utilities, insurance, medical, tuition, etc must be itemized.  Wells Fargo needs to see that you cannot afford your current payment BUT that after they give you a loan modification, you will have at least $250 left over each month.  Use the Loan Mod Calculator to compute your current cash flow and post mod cash flow-find out if you need to increase or decrease monthly expenses to meet this important approval trigger.
  • Assets:  if you show too much liquid assets you will not pass the hardship guidelines-what is a liquid asset and how much can you report?  Check it first with the Loan Mod Calculator.
  • Waterfall:  do you PASS this critical guideline and can your loan be modified using the standard Waterfall method by Wells Fargo?  The Loan Mod Calculator will show you a PASS or FAIL for this trigger, and also show you what your new modified target payment and mortgage terms could be.  Fine tune all your budget figures until the Calculator shows a PASS on all 7 triggers.

Follow these tips and learn more at MyLoanModificationCenter.com.  Avoid mistakes and increase your chances of approval, learn how to complete the RMA right!

What can you do if your Wells Fargo loan modification was denied?  If the reason for denial was failure of the NPV results or because you did not have enough monthly income to qualify, you need to learn about a new program called the Tier 2 loan mod.  This is part of the government program, but offers much looser criteria for approval.  Due to the very low numbers of homeowners who can pass the strict Wells Fargo loan mod guidelines, this new plan offers a second chance and a way for more people to qualify for a loan workout.

Here’s how it works-if you have been denied a Wells Fargo loan modification, ask to be considered for this Tier 2 plan.  The basic guidelines are the same for financial hardship, but the major differences are:

  1. Rental properties and second homes are allowed to participate
  2. Debt ratio guidelines are more flexible with a range of between 25-42%.  This means that if your current mortgage expense is less than 31%, you may still qualify for a lower payment-BUT your new payment must be at least a 15% savings per month.
  3. The Waterfall modification terms will still be used, but Wells Fargo has more latitude in achieving a new target payment for you-as long as it equals somewhere between 25% & 41% of your household gross monthly income.
  4. The household gross monthly income must be enough to pass the Waterfall-make sure your income will fit the guidelines-use the Loan Mod Calculator.  This

    Apply Correctly!

    program will compute and display the approval requirements for you so that you can make any needed adjustments to your budget before you submit for the Wells Fargo Tier 2 plan review.

Qualifying for a Wells Fargo loan modification is tricky-and the most important part of the entire approval process centers on your monthly budget figures-your household gross income, your monthly expenses and your assets must all be reported correctly in order to pass the guidelines.  The Loan Mod Calculator will show you all 7 triggers and compute a PASS or FAIL, showing you how and where to fine tune your budget figures.

Visit MyLoanModificationCenter.com for more free tips and information.

Good news for homeowners who have been trying to get approved for a Wells Fargo loan modification but have not been able to pass the strict guidelines.  A new program has launched that features more lenient criteria and offers a second shot a getting approved for a loan workout.

The Tier 2 program differs from the standard plan because it gives Wells Fargo a range of acceptable guidelines and loan mod terms to offer previously ineligible homeowners.  The basic highlights of the new plan are:

  1. Investment, second homes, rental properties are now eligible for a loan modification.  The income, expense and asset requirements are similar-use the Loan Mod Calculator to show you how you need to complete the financial worksheet correctly.  Up to 4 properties may be modified.

    Sample Budget Computed

  2. Debt ratio guideline is a range between 25-42% instead of the strict 31% requirement for the standard program.  This means that if your current mortgage payment is less than 31% of your gross monthly income, you may still qualify for a Tier 2 mod.  Also, your new target payment can be as high as 42% of your gross income.  However, there must be at least a 10% savings each month-use the Loan Mod Calculator to show your debt ratio, new target payment and Waterfall results.
  3. Financial hardship must still be evident, and loss of equity alone is not enough to meet the guidelines.  Current cash flow, monthly expenses and assets must pass certain guidelines, use the Loan Mod Calculator to show you how to fine tune your budget figures before you submit.

Homeowners who fell out of their loan mod or who were not able to pass the guidelines may now qualify under this new Tier 2 program.  The goal is to help more homeowners avoid foreclosure-so be sure that you don’t give up until you apply for this new program.

For more free information and tips, visit MyLoanModificationCenter.com and read the blogs.